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Your Zakat donations provide aid to poor and most needy in over 40 countries worldwide. Provide clean drinking water, care for orphans, deliver urgent humanitarian aid, provide nutritious meals, feed the hungry and care for the elderly.
The Prophet pbuh said, the dearest of actions to Allah is that which is done regularly, even if it is small. Giving regular charity no matter how small attracts the blessings of Allah swt. Help us bring hope to life to millions around the world Today.
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.” [2:110]
Here at Muslim Global Relief we know how confusing it can be to figure out how to calculate Zakat and working out how much Zakat to pay! That’s why we’ve made our very own Zakat Calculator, which is very quick and easy to use. You can use our Zakat Calculator to work out your Zakat payment and help us save lives in over 40 countries around the world.
How Much Zakat To Pay
Use our Zakat Calculator to work out how much Zakat to pay. Calculating your Zakat isn’t as difficult as you may think. The Zakat Calculator breaks down your assets into different categories making the Zakat calculation process really simple. Using the Zakat Calculator, we have broken down the calculation into Zakatable assets (gold, silver, cash, savings, business assets etc.) and Deductible liabilities (money you owe, other outgoings due) so you can calculate zakat you owe easily.
The Zakat Calculator will determine how much zakat you need to pay once you have calculated the value of your net assets. The Zakat Calculator will then show you whether your net assets are equal to, or exceed, the Nisab threshold. The nisab is the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat. This amount is often referred to as the nisab threshold. Our Zakat Calculator below will allow to work this out.
Our Zakat Calculator
In addition to our Zakat Calculator above, we have put together a list of frequently asked questions to help make the rules of Zakat easier to understand. If you need more help, please don’t hesitate to contact us.
What is Nisab?
Nisab is the threshold for which a Muslim’s personal wealth must be above if he or she is to be eligible to pay Zakat. There are two Nisab values from which the threshold is determined, which are:
- Gold – the monetary value of 87.48 grams of gold
- Silver – the monetary value of 612.36 grams of silver
Because the valuation of gold and silver fluctuates so, too, does the Nisab threshold. This is why tools such as our Zakat calculator prove so helpful as they help Muslims to quantify not only whether they qualify to pay Zakat, but how much it is they owe. A Muslim’s wealth must exceed the Nisab threshold for one full Islamic year, or ‘Hawl’, which is the term for a lunar year, which lasts for 354 days.
What do I count as my Wealth for Zakat?
Your wealth or net assets can be summed up as the liquid assets you possess minus your short term liabilities.
Liquid assets are those that can be transformed into cash very easily. Short term liabilities include your bills, rent, personal loans and credit card debts. Most scholars agree that any mortgage that you may hold, should not be included in that calculation.
Here’s a list of things that should be included in your assets:
- Cash in the bank and at home
- Cash saved for any special purposes e.g. wedding, Hajj, car purchase, etc.
- The value of gold and silver you own
- The value of shares at their market price
- Money owed to you, which is highly likely to be repaid
- If you own a business, the balance sheet value of the stock(s) you possess.
- If you own properties, any rental income that has been saved
You do not need to count the value of your home or land as part of your assets. You also don’t need to include person items, such as a car, clothing, home appliances, etc. as part of your assets.
If you own investment properties (to buy / to let), then any saved rental income will be a part of your assets. The equity value of your investment property portfolio is not included as part of your assets in the Zakat calculation.
If an investment property is due to be sold around your Zakat due date, then the anticipated profit is to be included as part of your assets.
Here is a list of things that should be included in your liabilities:
- The money you owe to others i.e. personal loans (from banks and friends), credit card debts, etc.
- Current month’s rent/mortgage payment or arrears
- Bills that are due
- If you own a business, then business expenses e.g. rent, rates, salaries, utility bills, etc.
- Short term business loans and overdraft amounts are included in your liabilities.
The calculation for your wealth/net assets is:
- Assets – short term liability = your wealth.
As long as your wealth is above the nisab of the day, you are eligible to pay Zakat
Gold & Silver
According to the Hanafi madhab, all gold and silver you own must be included as part of your wealth/assets in the Zakat calculation.
In the Shafi madhab, however, any gold and silver that is for personal use do not need to be included as part of your wealth/assets.
If all of your wealth is in gold, the value of the gold you own must be at – or above – the gold nisab in order to be eligible to pay Zakat.
If your wealth is a mixture of gold and/or silver and cash, it is preferable to use the silver nisab threshold.
Many scholars hold the view that it will be highly beneficial to include all gold and silver that you own as part of your wealth/assets, regardless of whether they are for personal use or not.
What part of my wealth is not zakatable?
Any goods, other than gold or silver, that you have not bought for resale are non-zakatable. No zakat is payable on your personal belongings, such us a house or a car.
Business Goods & Property
The business stock has to be counted as an asset for Zakat purposes. The value to be used is what would appear on your balance sheet. Usually, it is the cost of purchasing the stock.
Business premises do not need to be counted as an asset in the calculation. Any property the business owns (land, retail units, etc.) also do not need to be counted as assets.
What about Mortgages and Loans?
A long-term mortgage is not to be counted as a liability in your Zakat calculation.
Loans that are taken out for personal purposes can be subtracted as a liability in the Zakat calculation
I gave a lot of money to charity over the year, doesn’t that count as zakat?
For a donation to qualify as zakat, there must be a clear intention present, either when you separate the zakat money from the rest of your wealth, or when you make the zakat payment.
What part of my wealth is ‘zakatable’?
Gold and Silver: Any gold or silver you possess is zakatable, including jewellery according to Hanafi school, because these two metals have intrinsic monetary value.
Other precious metals and stones are not zakatable unless they were acquired for the purpose of trade.
Cash or its Equivalent: Cash at home, in bank accounts, savings, money lent to others,saving certificates, bonds, shares, investment certificates and so on, are all taken into account when calculating zakat.
Stock Purchased for Trade: Any goods you have bought with the intention of selling are included in your zakatable wealth.
Can I pay zakat in advance?
Yes, zakat can be paid in advance before the year has ended, but you should make sure you have wealth equal to or above the nisab.
Do I pay zakat on wealth belonging to my children?
Not according to the Hanafi school. A child is not liable to pay zakat, even if in possession of wealth above the nisab threshold. For a child who possesses the nisab or more, the first zakat payment will become due twelve lunar months reaching the age of puberty.
According to both Imam Shafi’ and Imam Malik however, a child who possesses wealth above the nisab value is liable for zakat.
What types of wealth are included in Zakat?
Assets that are included in the Zakat calculation are cash, shares, pensions, gold and silver, business goods, crops and cattle and income from investment property.
Personal items such as home, furniture, cars, food and clothing (unless used for business purposes) are not included.
Can I spread Zakat payments throughout the year?
Yes, zakat can be paid monthly by setting up a regular monthly payment such as a direct debit
Zakat Donation Projects
Donate your Zakat through Muslim Global Relief safe in the knowledge that your donation will go directly to where it is most needed. All of our current projects are Zakat-applicable, as well as sustainable and impactful, continuing to benefit people for years to come.
From Emergencies caused by natural or man-made disasters, climate change, drought, famine or war, our dedicated on-the-ground teams work to prevent loss of life and reduce suffering as much as possible for affected children, as well as their families and communities
We kick-start development in remote villages around the world, empowering rural communities by providing the basic necessities of life from Water, Sanitation, Education, Livelihood and Socio-Economic Development thus lifting them out of poverty Purify and protect your wealth by giving your Zakat.
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Zakat reminds us that our wealth is given by Allah swt, and is purified for Him, ensuring that we fulfil the responsibilities of our privilege, and that our excess wealth is redistributed to those who are struggling to survive. Please visit our Zakat information page where you can find out more information.